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China’s Sinopec partners US renewables firm LanzaTech

  • Märkte: Biofuels, Chemicals, Crude oil, Hydrogen, Petrochemicals
  • 20.04.21

Chinese state-controlled energy firm Sinopec's main clean energy investment arm, Sinopec Capital, will partner with and invest in US renewable energy firm LanzaTech, with a focus on promoting direct production of chemicals from waste carbon.

In a sign that the Chinese firm is exploring more technology partnerships to meet its carbon-neutrality goals, Sinopec is exploring LanzaTech's synthetic biology technology to produce chemicals directly from waste carbon rather than through a building block such as ethanol, Illinois-based LanzaTech said, without providing specific details.

LanzaTech turns China's steel mill emissions and Japan's unsorted, unrecyclable household waste into ethanol, which can be further converted into sustainable aviation fuel or polyethylene, it said.

It is a "strategic move" for Sinopec Capital, through its investment in LanzaTech, to invest in the bio-chemical value chain, Sinopec said.

Sinopec recently formed a partnership with new energy vehicle manufacturer Nio to build power battery exchange stations in China. It has also teamed up with solar manufacturer Longi Green Energy Technology to develop green hydrogen projects. Green hydrogen is produced using renewable energy sources through the process of electrolysis by splitting water into hydrogen and oxygen.

Sinopec is expected to fund part of its clean energy projects through green bonds. It issued its first 1.1bn yuan ($168mn) three-year carbon neutral bond this month, the first from the oil sector, and plans to use the proceeds to fund solar, wind and geothermal projects.

The People's Bank of China (PBOC) has indicated that it will support green finance through new financial tools to accelerate China's plans to achieve carbon neutrality by 2060.

China had about Yn1.8 trillion in outstanding green bonds at the end of last year. Funds raised from carbon-neutral bonds are required to be used in the construction, operations, acquisitions and interest payments of debts of green projects, including clean energy, clean transport, sustainable buildings and low-carbon renovation of industrial projects.

To meet its carbon-neutrality goals, China will need to invest Yn2.2 trillion/yr before 2030 and Yn3.9 trillion/yr during 2030-2060, which cannot be fulfilled solely through government investments, PBOC governor Yi Gang said this month.

Sinopec has announced a plan to achieve carbon neutrality by 2050, 10 years ahead of the national target. Its previously announced initiatives centred on downstream hydrogen investments, including building 1,000 hydrogen refuelling stations and related infrastructure by 2025. Part of Sinopec's Yn26.5bn marketing and distribution segment of its capital expenditure budget this year will go towards building hydrogen refuelling stations.


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